After a year-long campaign, the GST on sanitary napkins has finally been abolished.
"GST Council cuts tax rate on an array of products".
It is expected that the council would decide on revision of tax rates on vending machines and lithium ion batteries among others.
The value limit of footwear was enhanced from Rs 500 to Rs 1,000 for 5 per cent rate.? GST on 17 items used by middle class, paints, refrigerators, washing machines, vacuum cleaners, storage water heaters, TVs up to 68 cm was reduced from 28 to 18 per cent.
Tax rate on ethanol has been slashed to 5 percent from 18 percent at present.
While hotels with tariff below Rs 1,000 are exempted from GST, those with tariff between Rs 1,000-2,500 are taxed at 12 percent, those between Rs 2,500-7,500 at 18 percent, and above Rs 7,500 at 28 percent.
"I think the 28% tax slab should be done away with", said Delhi Deputy Chief Minister Manish Sisodia, who holds the finance portfolio.
GST on handmade carpets and handmade textile floor coverings has been reduced from 12 percent to 5 percent.
"The broad level reductions in rates could lead to lower tax collections", said M S Mani, partner at consulting firm Deloitte India.
This is to facilitate the ease of payment and return filing for small and medium businesses with an annual aggregate turnover up to Rs. 5 crores. Two new simpler return formats have also been approved.
The next meeting of the Council is slated on 4 August, which will discuss issues relating to the MSME sector as well as ways to incentivise digital transaction via Rupay cards and BHIM app.
The controversial reverse charge mechanism (RCM) has also been deferred until September 2019.
This would eliminate the need for toll points for transports and help monitor the goods and the route taken by the transport vehicles, enabling smooth transport of goods, Goyal said.
Amendments such as the omission of liability to pay tax on the reverse charge, enabling new return filing procedures, allowing more service providers to opt for composition scheme, among others has been suggested.The amendments in the Central GST (CGST) Act, 2017 will now have to be cleared by the Cabinet and will ultimately require the Parliament's nod.
Given below is a list of revised GST rates.